1/ The NFT market is bleeding out. Liquidity has dried up. Our portfolios are down bad. #cope
What kind of projects will do well in the next bull run? And what should projects focus on building during the bear?
Hang in there, dear degen, for this is just the beginning.
🧵
What kind of projects will do well in the next bull run? And what should projects focus on building during the bear?
Hang in there, dear degen, for this is just the beginning.
🧵
2/ Though we often get excited about being early to web3, the downside that we’ve all experienced in some way, shape or form is that hype > reality.
We have just been rudely awakened from a euphoric state where, if we are honest with ourselves, utility = hype. (ouch)
We have just been rudely awakened from a euphoric state where, if we are honest with ourselves, utility = hype. (ouch)
3/ Relying on hype is not all bad.
The recent a16z State of Crypto Report cites price as a leading indicator in the space, meaning increasing prices drive interest in crypto, which leads to ideas & activity, which leads to innovation.
In crypto, hype is the spark to build.🌱
The recent a16z State of Crypto Report cites price as a leading indicator in the space, meaning increasing prices drive interest in crypto, which leads to ideas & activity, which leads to innovation.
In crypto, hype is the spark to build.🌱
4/ Still, a major learning from the last NFT bull run is that, for all the hype of p2e, metaverses, tokens, etc., virtually none of it lived up to the hype.
Ironically, it paid to have no roadmap. Surprise & delight airdrop tactics worked best (see @BoredApeYC, @AzukiOfficial).
Ironically, it paid to have no roadmap. Surprise & delight airdrop tactics worked best (see @BoredApeYC, @AzukiOfficial).
5/ This is not for a lack of projects trying to execute, mind you. But be it p2e economies melting (Axie, Pegaxy), projects launching tokens with scarce utility, or a plethora of other noble, ambitious experiments, not much has actually delivered (yet).
6/ There are some exceptions, like @Llamaverse_, which rolled out a Polygon-based marketplace in a smooth, professional manner with quality offerings. Still, we all know marketplaces, though helpful, are just the tip of the iceberg for web3. We are barely walking.
7/ Meanwhile, metaverses have small (as in tiny) daily active users.
According to Dapp Radar, as of April '22 The Sandbox had 1,180 daily active users compared to Decentraland with 978. I mean, we are EARLY, like embarrassingly, painfully, rudely early.
coindesk.com/markets/2022/0…
According to Dapp Radar, as of April '22 The Sandbox had 1,180 daily active users compared to Decentraland with 978. I mean, we are EARLY, like embarrassingly, painfully, rudely early.
coindesk.com/markets/2022/0…
8/ Web3 utility, at our current stage, ends up being the following:
1. Art that appeals to a wide audience (pfp)
2. A brand with prestige
3. A capable leader who communicates & has marketing savvy
4. A loyal community
5. The possibility & enticement of future surprises
1. Art that appeals to a wide audience (pfp)
2. A brand with prestige
3. A capable leader who communicates & has marketing savvy
4. A loyal community
5. The possibility & enticement of future surprises
9/ For all its hype & promise, pure web3 utility looks rather immature. Metaverses, VR, AR, XR, crypto gaming are inevitable. They just may take more time to build than our collective exuberance demands (wen moon?).
10/ But fear not! NFTs are not going anywhere. We just have to get better at grounding them in offerings that relate to tangible needs & meeting people where they are.
11/ At this stage, the key for successful projects moving forward is having core utility based in web2 (so it has practical value), & utilizing web3 tech to create novel experiences & supplementary utility.
12/ Big brain projects know this & are looking to build connective tissue to web2, for web3 may be the future, but web2 is very much the present, both in terms of consumer engagement/attention & dollars spent.
13/ @opensea monthly active traders peaked at just under 550k in Jan 22, which is ridiculously tiny. If you believe NFTs have gone mainstream, you are wrong, friend. Full stop. There are not enough of us (yet).
14/ We are a crazed crew of passionate early adopters shouting at the world to get on board, while most of them can’t hear us (yet).
15/ For a web3 brand to grow, it has to meet the audience where it lives which, for the vast majority, is web2.
Web3 brands then have to make the leap to web2, to reach the masses & deliver tangible utility, enhanced by web3.
Whoever cracks this code will moon like crazy.
Web3 brands then have to make the leap to web2, to reach the masses & deliver tangible utility, enhanced by web3.
Whoever cracks this code will moon like crazy.
16/ The good news is that a bear is for building, and, coincidentally, building a meaningful partnership with a web2 company takes time.
Though web3 is the center of our world, it is almost certainly not the center of theirs. #rudeawakening
Though web3 is the center of our world, it is almost certainly not the center of theirs. #rudeawakening
17/ Partnerships with web2 companies are both crucial, & likely an uphill battle in the short term until the promise of web3 tech can be grounded in utility that people outside of the early adopter community actually care about & can use.
18/ I remain optimistic: keep an eye out for capable web3 teams making moves in web2, for these are the ones to watch come the next bull.
19/ @MindblowonNFT
@1_8ote & @Dagelanco have built a webtoon social media empire of (5m). They recently secured veteran advisors with significant licensing experience & a content collaboration with @NetflixID. #impressive
@1_8ote & @Dagelanco have built a webtoon social media empire of (5m). They recently secured veteran advisors with significant licensing experience & a content collaboration with @NetflixID. #impressive
https://twitter.com/MindblowonNFT/status/1524018924265693185
20/ @angryapearmy
@kernazo, @hyprlynk2 & crew have been building, securing a partnership with @Vans. An upcoming comic book & movie are other great examples of future web2 crossover. Heavy hitter web3 brand in the making.
@kernazo, @hyprlynk2 & crew have been building, securing a partnership with @Vans. An upcoming comic book & movie are other great examples of future web2 crossover. Heavy hitter web3 brand in the making.
https://twitter.com/kernazo/status/1521700209939472385
21/ @Forgot3thWorlds
FEW, the @Takoa & @0xExceed led project secured a recent partnership with @AudiOfficial. Excited to see where this talented team of builders takes this, as they are intent on delivering IRL utility to holders.
FEW, the @Takoa & @0xExceed led project secured a recent partnership with @AudiOfficial. Excited to see where this talented team of builders takes this, as they are intent on delivering IRL utility to holders.
https://twitter.com/Forgot3thWorlds/status/1526897899648745472
22/ @psychedelic_nft
@BAYC2745 led PA is building a mobile app to connect holders to mental health support services via text from trained professionals. An example of valuable IRL utility, supported by web3 tech.
@BAYC2745 led PA is building a mobile app to connect holders to mental health support services via text from trained professionals. An example of valuable IRL utility, supported by web3 tech.
23/ In closing, what does utility look like next bull run?
This list may remain relevant:
1. Art that appeals to a wide audience (pfp)
2. A brand with prestige
3. A capable leader
4. A loyal community
5. The possibility & enticement of future surprises
This list may remain relevant:
1. Art that appeals to a wide audience (pfp)
2. A brand with prestige
3. A capable leader
4. A loyal community
5. The possibility & enticement of future surprises
24/ The new meta: I see web2-driven utility enhanced by web3 tech as a MUST HAVE for the next phase of NFTs.
Hype will still play a role (this is crypto afterall), but it's time for utility to grow up & start providing material value to a broader audience beyond degens.
Hype will still play a role (this is crypto afterall), but it's time for utility to grow up & start providing material value to a broader audience beyond degens.
25/ If you found this thread helpful, please:
1: Retweet & like the first post, linked below
2: Follow me for similar content
3: Take care, stay safe, be well
Thank you for reading 🙏🏽
Until next time💗
1: Retweet & like the first post, linked below
2: Follow me for similar content
3: Take care, stay safe, be well
Thank you for reading 🙏🏽
Until next time💗
https://twitter.com/BuddhaMask/status/1528622060179664896?s=20&t=y_k3iWFPo8IB2E3dtUqvmA
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